1960 Investment of $25K grows to $1.4B

[POTLAND PSILBYLO]

Just for laughs I worked out the math on the annual return on investment. This has nothing to do with operation expenses or operating profits or losses, just the franchise investment itself. $25,000 x (1 + 22.44% annual rate of return) ^ 54 years = $1,400,000,000.

22.44% doesn't seem so massive, but given time, it is huge.

Compare Ben Franklin's gifts to Boston and Philadelphia of $2000, which grew to $6,500,000 two hundred years after his death. This was about 1/10th the initial investment, about 4 times as long, but only 1/200th the final value.


If you ask me, "overpaying" for an NFL franchise is only possible for flippers.

At the 22.44% rate, the franchise will be worth $2.5B in 2017.

[POTLAND PSILBYLO]

Re: 1960 Investment of $25K grows to $1.4B

And Pegula's 17 year $7500 investment which sold for $4.7B was 94.9% annual growth! Holy **** Batman!

[Mike]

Re: 1960 Investment of $25K grows to $1.4B

To put 22.44% rate of return into perspective:
- High risk loans (eg Credit Card companies) on average charge less than 20% and after overhead and expenses the actual return is far less.

- The Great Warren Buffet averaged a anual return of about 19% and today Birkshire Hathway is one of the largest companies in the world.

- And the $600 Billion Gorilla in the room -also largest company in the world - Apple has about a 22% profit margin....

In other words, 22% ROI is astronomical!

[Mace]

Re: 1960 Investment of $25K grows to $1.4B

All I can say is been there, done that. I loaned Little Felipe 10 bucks last week, he paid me back 12.24 this week after selling that chair To Big Felipe. I loaned Big Felipe 12.24 and he paid me back with this cool chair. It's just another day to us speculative investors.

[Don't Panic]

Re: 1960 Investment of $25K grows to $1.4B

And Pegula's 17 year $7500 investment which sold for $4.7B was 94.9% annual growth! Holy **** Batman!

Exactly. Which makes the buy that much more than justifiable.

[Typ0]

Re: 1960 Investment of $25K grows to $1.4B

Disagree about the flipper idea. The only one looking for that ROI would be someone in for the long term knowing it won't be there in the short. I guess the exception is someone in LA looking to pay 3B for the franchise...but that is not going to happen. Pegula is interested in building an empire in WNY if he did something like that he would be shot walking down the street in Amherst.

[notacon]

Re: 1960 Investment of $25K grows to $1.4B

Just for laughs I worked out the math on the annual return on investment. This has nothing to do with operation expenses or operating profits or losses, just the franchise investment itself. $25,000 x (1 + 22.44% annual rate of return) ^ 54 years = $1,400,000,000.

22.44% doesn't seem so massive, but given time, it is huge.

Compare Ben Franklin's gifts to Boston and Philadelphia of $2000, which grew to $6,500,000 two hundred years after his death. This was about 1/10th the initial investment, about 4 times as long, but only 1/200th the final value.


If you ask me, "overpaying" for an NFL franchise is only possible for flippers.

At the 22.44% rate, the franchise will be worth $2.5B in 2017.

I hate to burst your bubble, but, this is totally off base.

The $25,000 was not an "investment", it was simply the franchise fee. The "investment" in the Bills by Ralph Wilson was MUCH more...much, much more.

Getting a professional football off the ground, from nothing, took spending millions of dollars...when that kind of money meant something.

[POTLAND PSILBYLO]

Re: 1960 Investment of $25K grows to $1.4B

I hate to burst your bubble, but, this is totally off base.

The $25,000 was not an "investment", it was simply the franchise fee. The "investment" in the Bills by Ralph Wilson was MUCH more...much, much more.

Getting a professional football off the ground, from nothing, took spending millions of dollars...when that kind of money meant something.

Gee I though I qualified that! Anyway all you can sell is the franchise.